The future of procurement is not just in adding more savings, but in adding greater value to the business. In many industries, the function is expected to deliver more – often with fewer resources. As outsourcing arrangements grow more complex, meanwhile, buyers are managing increasingly business-critical relationships.
The traditional focus on financial savings alone to deliver value has limitations. First, once procurement has fully realised these savings, there are few additional benefits it can deliver in later sourcing cycles. Second, a conversation around efficiencies potentially precludes other value contributions, such as productivity improvements, innovation or stakeholder engagement.
It is these deeper contributions that Michael Raphael, CPO (Asia-Pacific) at JLL has challenged his team to implement to further their impact. “We need to look at finding more opportunities to advance the profession up the value chain,” he told delegates at a CPO challenger session during Procurement Leaders’ Asia Pacific Procurement Congress in November 2019.
Download this event writeup to learn more about JLL’s three-step approach that has enabled buyers to uncover new opportunities to partner with the business to deliver value.